Recently, landowners across rural Iowa report having received solicitations in the mail offering land lease options for proposed solar projects. Often, these letters offer attractive per-acre rental payments for various phases of a long-term proposed project, promising steady and predictable income. However, like all contracts, the devil is in the details. As with any legal agreement, we encourage members to do their homework and seek legal counsel before signing on the dotted line. 

Most of these letters are coming from companies outside of Iowa looking to lease land for future solar projects. Many of these letters erroneously refer to Iowa law; referencing a failed piece of state legislation (Senate File 2356) introduced last session. In fact, Iowa’s electric cooperatives and many other groups registered in opposition to the legislation due to its likely negative impact on electric co-ops and our members.

Some solicitations also falsely claim local support for their solar initiative or that the electric output would somehow benefit the landowner's neighbors or the local electric cooperative. Letters also frequently include deceptive endorsements attributed to the Iowa Farm Bureau (IFB). This claim is untrue and IFB’s legal team is actively working to remove these perceived endorsements.

Before signing any agreement or contract, always consult your legal counsel. They can help explain the benefits and disadvantages of these agreements, answer any questions you have, and help negotiate fair and equitable terms. These are long-term agreements that can give the solar company exclusive options and control of your land for decades. Spending some extra time up front to better understand the terms and conditions of the proposed agreement can save you significant time, money, and headaches in the future.

If you have received such a letter, or would like more information, please contact Prairie Energy at (800) 728-0013.